30% price increase for the first wave! International giants want to raise prices next month, may set off a new wave of material wars
According to Chinese Taiwan media reports, Taiwan's national giant, an international supplier of passive components (resistance, capacitors, inductors, etc.) plans to adjust the channel dealers and EMS customers because the inventory is too low, and the operating rate has not reached the full cost. Increase the price of resistors and capacitors. The average price of the first wave of price increases is expected to be around 30%, which will take effect on March 1.
Huge market space for passive components
Passive components, also known as passive components, refer to the circuit components that do not affect the basic characteristics of the signal, but only let the signal pass through without change, the most common ones are resistance, capacitance, inductance, etc. With the function of consumer electronic terminal becoming stronger and stronger, the passive components needed are better and more, and the corresponding price is more and more expensive.
With the performance of the products launched by the consumer electronics giants represented by Huawei and apple becoming more and more advanced, display performance, computing performance, fingerprint unlocking, face unlocking and many other functions have greatly promoted the demand for passive components. In terms of increment, the latest technologies such as smart speakers and wireless headphones are developing vigorously, which also drives the growth of passive component market.
In terms of market size, the market size of passive components reached US $24.24 billion in 2016 and is expected to reach US $328.9 billion in 2021, with a compound growth rate of 6.29%. With the gradual landing of 5g, VR, AI and other avant-garde functions, the market space of passive components will increase by multiple levels in the future. On average, 5g mobile phones use more than 1000 passive components, an increase of 20% to 30% compared with 4G mobile phones.
Passive component prices may not stop
Guoju is currently the world's largest chip resistor supplier, with a market share of 34%. After Yageo announced the acquisition of KEMET, a US passive component factory, last year, in addition to officially entering the high-end automotive and industrial markets, it also made Yageo the top three global passive component suppliers.
Starting from the second half of last year, due to the rising demand for 5G and autonomous driving, MLCC capacitor manufacturers have been shouting news that MLCC is out of stock and rising prices. At the end of November, the resistance manufacturer Dayi Technology took the lead in saying that it had completed price increases for its resistance products. Yageo closed the trading system, cleared outstanding orders and unconfirmed orders, resulting in a wave of fancy price increases. In December of last year, Samsung Electric raised the MLCC price for distributors, and locked it on common material numbers such as 104 and 105, increasing by about 5-10%.
Just beginning in 2020, Yageo Electronics started to increase prices, announcing that its two major products, MLCC capacitors and thick film resistors, will increase prices by at least 10%. Not only is the price increase, Giant Giant, Samsung, and domestic company Fenghua Hi-Tech reportedly have stopped taking orders, and the delivery of passive components may be extended to 6 months, making the market for passive electronic components more complicated.
According to industry analysts, because Yageo accounts for about 13% of the global MLCC production market and chip resistors account for up to 33%, under the state of mind that the market is generally chasing up and not chasing down, Yageo ’s price increase may be The market has set off a new wave of fighting for materials.
At present, there is no inventory in the upper, middle and lower reaches. Therefore, in addition to the normal demand of the industry, manufacturers' demand for replenishment of inventory has indeed promoted tighter supply and demand for passive components, and it is expected that the price increase has not stopped.
Multiple shares benefit from price increase of passive components
Fenghua high tech products include MLCC, chip resistor, chip inductor, ceramic filter and other passive components. It is a leading manufacturer of MLCC in China and acquires 40% equity of Guangjie technology in Taiwan. The company said that based on the tight supply of MLCC, its MLCC products also have the expectation of price adjustment.
Jiemei technology is the leader of MLCC thin belt industry in China. Its products mainly include paper belt, plastic belt, tape, release film, etc. its customers include Samsung, Panasonic, Guoju and other well-known electronic components enterprises. (the carrier demand is closely related to the electronic components industry)
Torch electronics is the leading MLCC supplier in China. Many new products such as military MLCC leader, tantalum capacitor and SLC will form new performance growth points. It fully benefits from the market demand driven by the upgrading of China's weapons and equipment, the upgrading of informatization and localization.
Yangjie technology is one of the few domestic enterprises that integrates vertical industrial chains such as the design and manufacturing of discrete device chips, device packaging and testing, terminal sales and services, etc. the product line covers a full range of multi specification semiconductor discrete device products such as discrete device chips, power diodes, rectifier bridges, etc.
Shunluo electronics is a leading chip inductor manufacturer in the world. Its main products are passive electronic components - inductors.
Sanhuan group is the leader in the field of ceramic components in China, which can produce MLCC in volume. The company's MLCC products have been widely used in home appliances, lighting, consumer electronics, industrial control, communication equipment, automotive electronics and other fields.
China ceramics is the largest supplier of MLCC electronic ceramic materials in China, with a market share of 80%.
Zhenhua Technology, born in the third line military electronic base, is the all-around leader in the field of military electronic components.
Hongyuan electronic's main business is the research and development, production and sales of electronic components based on MLCC.
Huilun crystal specializes in piezoelectric quartz crystal components, one of the leading enterprises in the domestic surface mount piezoelectric quartz crystal components industry, which is used in mobile phones and other industrial chains.。
